I don't think so as databases will be taken care of automatically. I am not sure about the process. The command you said is only for instance. Now the question arises should we rebind the packages after this -D option or not. I would wait for expert comments on this. I guess we may have to take outage and do the process like again recovering from files take before this higher level fix pack application and then redo all again like updating old config, etc. I would wait for some expert comments on this.

If you look at the upgrade/downgrade versions mentioned it is from
db2 9.7 fp 7 to db2 9.7 fp 5. Which is no release change but only Fix Pack
Change.
My understanding for Fix Pack upgrade is no change required for DB..meaning
restoration of a backup of DB in the new instance...Instance update should
be enough.